Moody's raises Greece's ratings to Ba1 from Ba3

The rating agency also upgraded the LC senior unsecured ratings to Ba1 from Ba3, and the FC senior unsecured shelf and MTN programme ratings to (P)Ba1 from (P)Ba3. The FC other short-term rating has been affirmed at (P)NP. The outlook has been changed to stable from positive.

In its assessment, Moody's said the two-notch upgrade "reflects Moody's view that the Greek economy, public finances, institutions, and the banking system are witnessing profound structural change that will support a continued material improvement in credit metrics and resilience to future potential shocks. In particular, the government's parliamentary majority following the June elections provides a high degree of political and policy certainty for the coming four years, fostering the ongoing implementation of past reforms and the design of further structural reforms, which supports Moody's expectation for further economic and fiscal strengthening."